Milwaukee Athletic Club

“Member classes and rights include: -Young Executive (Ages 21-35) This class has no voting rights and can not run for the Board of Directors. Otherwise they enjoy the same rights as other members. -Resident (Ages 35-59), Resident II (Ages 60-64), Resident III (Ages 65-69), Resident IV (Age 70 Plus), and Executive (Age 35+): Full Rights including access to all social and athletic facilities. They can sponsor hotel guests and can sponsor business meetings and wedding receptions. They can vote for and hold office. -Non-Resident (No age limits) Full Rights. These members do not maintain a residence in the five surrounding counties of the city of Milwaukee. -Clergy (No age limits) Full Rights. Their sole occupation must be that of a full time priest or minister. -Honorary (Age 80 Plus and have been a member more than 25 years or a person that's been a member more than 50 years regardless of age.) Full rights as above except they are exempt from paying annual dues. -Resident Senior (Age 75 Plus and have been a member more than 25 years) Full Rights. -Surviving Spouse (No age limit) Surviving Spouses of deceased members are extended a dues free courtesy membership for a six month period after which they have the option of continuing membership in the appropriate class for which they qualify without payment of additional entrance or membership fees.”

“All classes of members (except Associate members) are entitled to vote for or hold office as a Director on the Board of Directors. At the regular meeting of the Board of Directors in December of each year a nominating committee consisting of three Board members and four members at large are appointed and that committee shall provide its recommendation for nominees to the Board by March 1st. The committee shall nominate at least as many candidates as the number of positions to be filled. Besides that process a candidate for office can be selected by a petition signed by at least 5% of the voting members of the Club. Candidates for election are permitted to make one mailing to voting members provided that communication is pre-approved by the Board. The Secretary of the Board then prepares a ballot that is mailed to each voting member at least ten days prior to the election. The voting members receive two envelopes along with their ballot-one says ballot the other is a S.A.S.E. that is addressed to the Milwaukee Athletic Club Attn: Secretary. The voting member marks his ballot with the candidate(s) of his(her) choice and places his (her) ballot in the envelope marked ballot and seals it. That envelope in turn is inserted in the S.A.S.E. Upon receipt the Secretary places all ballot envelopes in a ballot box. The ballots are counted by Club employees designated by the Board and the election results are announced at the Clubs annual meeting which takes place in mid-May each year.”

“Baker tilly virchow krause, llp conducts our audit as well as prepares our tax returns. We rely on their expertise to prepare and review the tax returns. Our controller reviews the return before signing and filing.”

“When the Club solicits bids for capital projects and the major purchases of other goods and services those companies which have known affiliations to Board members are specifically excluded from the process. The General Manager, the Controller and the Chairman of the House Committee double check for compliance to the conflict of interest policy prior to awarding a contract.”

“The only top management position that has its compensation reviewed by the Board is that of General Manager. The last time this review took place was 3/31/08 in private session of the Board of Directors meeting. The factors taken into account were job performance versus written goals, the economic health of the Club and salary surveys of comparable positions. An annual increase was approved for the General Manager based on a majority vote of the Board of Directors.”

“Forms are available upon request.”

“Outside services 175,243. Equipment rental 146,734. Repairs & Maintenance 139,558. Laundry, linens and uniforms 132,133. SUPPLIES 120,660. TELEPHONE 108,001. Bank Charges 103,603. China, Glass, & Silverware 77,537. Dues & subscriptions 17,569. POSTAGE 16,999. Cable 7,345. Fuel 5,849. PRINTING & PUBLICATION 5,288. Bad debt expense -5,226. Apportioned expenses -145,088.”

“No changes have been made to the process.”